Service Unit Billings
Overview
Service Unit Billing (SUB) is the method used for internal billing and can provide more information regarding charges than a journal entry (JE). The SUB is loaded directly into the system by the user in the Recharge Units (Service Unit) or office doing the billing, enabling them to be in charge of the timing of the receipt of their revenue.
Who Should Use Service Unit Billings (SUB)
- Recharge Units (Service Units): Units that provide goods or services to other university units or for various activities within their own unit. The direct costs for providing the goods or services can be easily and accurately identified and must be billed using an approved rate with the intention of breaking even. This will normally involve recording the costs and recharge revenue in the auxiliary-internal services fund (52000). If you need to establish a new recharge rate, please see Submitting a Recharge Rate.
- Units that Rebill: Units that move an original cost of a good or service from the department that was initially charged to the department that used the good or service. This is recorded by reallocating the expense.
Understanding the Language and Terms Used
A Service Unit Billing (SUB) is a tool to bill an expense to other units which have requested a good or service from the service unit or to share an expense incurred in one unit across one or more other units. This generates a voucher in the procurement system to the unit being billed, and credits the unit doing the billing.
- Service Units (Recharge) exist to provide a service or good to other parts of the university.
- Sharing an expense (Rebill) may include things such as units working together to order 'Product X', which is to be shared across the units. This may be done to generate economies of scale on the order.